The questions we aim to answer are:
Climate risks can be either physical or transitional and these risks impact on banks, and financial institutions, either directly through the valuation of assets, liabilities and cost of capital, lower corporate profitability, or indirectly, through macro-financial changes. Material assets are valuable. Close to one in five large cap companies listed on the NASDAQ OMS Stockholm market operate in real estate.
This project engages 2 research organisations (SEI and the Sustainable Finance Lab at KTH) and 14 consortium partners (financial institutions; asset owners; insurance companies; and government agencies). The main expected output is an evidence-based climate risk evaluation method for improved decisions and assessment of the value of material assets, incorporating actors’ heterogeneity but also cascading climate related impacts.